Computation of peer company groups based on position transition data in a social networking service

In an example, a granularity of company similarity is determined, wherein the granularity of company similarity is a level at which social networking data should be filtered. A weighted graph of companies is constructed at the granularity of company similarity, wherein each node in the weighted graph is a company and a directed edge exists in the weighted graph between a first node and a second node if the social networking data, at the granularity of company similarity, indicates that a transition occurred wherein a member who held a position at a company corresponding to the first node transitioned to a position at a company corresponding to the second node, wherein each directed edge contains a weight indicating a strength of relationship between nodes. The weighted graph of locations is traversed from a node corresponding to the target company in order to identify companies similar to the target company.